Mr Barend Janssens, the emerging markets head at RBC, said that much of the wealth pouring into Singapore and Hong Kong is coming from Asians themselves.

"Many people think that the growth of the wealth management business here is mainly due to a migration of wealth from Europe to Asia but in fact, wealth management is growing because Asian clients are increasing their wealth."

The Asia-Pacific is now home to the highest number of wealthy individuals in the world - 3.37 million people in the region hold investable assets of at least US$1 million (S$1.23 million), excluding their homes, the report said. However, the scarcity of skilled talent is the most critical challenge for wealth management firms in the region, it said.